Wills and Estate Planning - Intestacy

This is simply incorrect - if there are children, parents, siblings or their issue, grandparents, uncles or aunts or their issue surviving. Secondly, what happens anyway if Joanne pre-deceases or dies together with her husband in an accident? Who would (“he”) want to benefit then?

 

What are the intestacy rules? Basically these are a set of rules (applying in England & Wales) set out by statute as to how an individual’s estate is distributed. It should be remembered that the persons/or persons applying to take legal title are called administrators – their authority to act will arise only following the issue of the Grant of Letters of Administration. Under a  Will the probate document serves to validate the appointment of the executor/s whose authority stems from the Will, which will be effective from the date of death of the testator. These are subtle, but important differences, with regard to the actions of personal representatives in administering an estate.

 

The distribution under intestacy is dependent whether there is a surviving spouse or not.

 

 

(a)             no children, parents brothers or sisters or their issue – then spouse/civil partner takes whole estate.

(b)             with children surviving – spouse/civil partner takes personal chattels, a statutory legacy of £250,000 with a life interest in half of the remaining residue (if any). The children (or their issue) share the other half of the residue and, on the death of the spouse/civil partner, that share as well.

(c)             with no children – but one or more of parents , brothers and sisters (and their issue) survive – the spouse/civil partner will take personal chattels and a statutory legacy of £450,000 and half the residue(if any) absolutely. The other half is shared by parent(s) or if neither survives- brother and sisters (or their issue) absolutely.

 

 

(a)             any children (or their issue) will take the whole estate absolutely.

 

(b)             otherwise the whole estate to other surviving relatives in a set order of preference; failing that the Crown

 

(c)             the specified order: parents, brothers and sisters(or their issue); half-brothers and sisters (or their issue); grandparents; uncles and aunts (or their issue); and parents’ half- brothers and sisters (or their issue).

 

The “tracing” concept is that of a “blood line” at all times.

 

For an unmarried couple –the surviving partner has no right to any share in the deceased partner’s estate. Claims for “reasonable maintenance” can be made if certain criteria are satisfied and awarded by the Court (see next month’s article).

 

The entire process of intestacy is inflexible cumbersome and tax inefficient. Invariably, it will be much more protracted and expensive to administer such an estate compared to one where the deceased had left a Will.